Once your kids are grown up and ready to go to college, you think about gifting them their first car, or maybe allow them to drive your older car. This is a proud moment for any parent, and you would want to ensure that your child has a safe and enjoyable beginning to his adult life, by getting a driving license. That is the good part of it, but side by side with impending adulthood for your kid, you would also need to get them their first car insurance.

As you begin to collect insurance quotes for young drivers , which can help you select the best policy for your kid; you need to be smart and ensure that you neither underinsure your kid (in which case you would pay from your pocket when a claim is to be made), nor do you pay high premium for coverage that your kid does not need.

Let us look at a few ways in which you can reduce your premium amount when you take car insurance for your kid .

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• You need to stretch the deductible as much as possible, which would in turn help reduce the premium. Also, if you decide to not keep any deductible and claim for every small amount, then keep in mind that you would lose out on the no-claim bonus the following year. The deductible is the amount beyond which you can claim for insurance. If you declare a deductible of $1,000, it means that you will not make a claim if the damages are worth $800.
• You can choose not to take comprehensive insurance if you are handing over an old car to your kid. The reason is that the payout to you would be less than the amount of money you spend on premium because it’s an old car.
• Many insurers offer special discounts on premiums for teenagers who undergo some safety courses or watch a traffic DVD. The insurer would guide you so that your kid can do the needful and help you take a cheap car insurance for new drivers.
• If your kid usually stays at a hostel and only drives your vehicle when he comes home on vacations, then the insurer would substantially reduce the premium. You need to inform this arrangement to him before taking the insurance.
• It makes more sense to combine two or more policies that your kid needs instead of just looking for cheap car insurance for first-time drivers under 25. If you speak to the insurer about taking both auto insurance and health insurance for your kid, then you could negotiate a much better premium.
• To reduce the premium substantially, you need to choose a safe and lower powered car for your kid. Insurance companies usually grade cars according to their safety records and horsepower when they underwrite an insurance application. A safe and lower powered car might sound a bit dull to your child, but it sure will save you some money on your premiums.

Follow these six simple steps and see your premium expenses reduce dramatically.

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